Shell has agreed to acquire stakes in two offshore blocks in ultra-deep waters off the coast of Angola from Chevron. The European energy major announced the deal on Tuesday, marking a significant investment in the Sub-Saharan African country’s energy sector.
Angola, the second-largest crude oil producer in Sub-Saharan Africa after Nigeria, has been undertaking major regulatory reforms to attract investment into its energy sector. The country aims to maintain production above 1 million barrels per day. European oil majors, including Shell, have pledged to spend billions in Angola to achieve this goal.
According to a statement by Shell, the company has signed a farm-in agreement with Cabinda Gulf Oil Company Ltd, a subsidiary of Chevron, to obtain a 35% interest in Block 49 and 50 offshore Angola. The deal has received governmental approval and is pending final legal requirements. A Chevron spokesperson confirmed the agreement, stating that the transaction is subject to regulatory approval.
The new exploration in Angola is crucial for sustaining production into the 2030s, according to Shell. The company aims to grow its gas production by 1% through 2030 and maintain steady oil output. While financial details of the deal were not disclosed, the investment underscores the importance of new exploration for Shell’s long-term production goals.
The Angolan government’s efforts to attract investment in the energy sector have been significant, with major regulatory reforms implemented in recent years. The government’s goal of maintaining production above 1 million barrels per day is expected to be supported by investments from European oil majors like Shell. As the deal awaits regulatory approval, it is likely to have a positive impact on Angola’s energy sector, contributing to the country’s economic growth and development.
